I am new but I have done some sucessful ripping, so this problem is new to me. I am using gordians Knot. After ripping and converting the avi to Divx, when viewing, the background seems to be awash in colors. They are not stable. I am not sure if you can understand what I am describing. Its like looking at oil in the street after a rain, you get a wash of colors that seem to swirl as the scenes change. When I encode, I usually do sharp and have not had problem till recently. _X_X_X_X_X_[small]Lets keep it real.[/small]
Which divx codec are you using? Divx 5.03 has been known to zause mosaic type frames in some movies, some say it happens often in dark films. If you are using 5.03 id suggest upgrading to 5.05. Im pretty sure thats your problem, if not then try editing your avs script that gknot generated, maybe the smoothing filter is too strong try decreasing it.
I have been using divx 5.03, but during the d2v conversion, I have been changing the video from pc scale to tv. I don't think that this would have done this, but its possible. I will upgrade divx and see how it comes out.